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Technology Stocks : ADI: The SHARCs are circling! -- Ignore unavailable to you. Want to Upgrade?

To: Ren Liu who wrote (1311)	9/16/1999 1:06:00 AM
From: Bill Martin	Read Replies (1) \| Respond to of 2882

You must first realize that the absolute price of a stock is irrelevant and is not a "rating" of some sort. If they split the stock tomorrow its price would drop by half but the company is still worth the same total capitalization -- the market will not have cut its "rating" but only its price. You must look at the price in the context of how many shares are outstanding and what the earnings are, etc. In point of fact, ADI sells at a P/E ratio of 68 whereas MXIM is only at 57 so the market is already valuing ADI more highly than MXIM -- despite the fact that the absolute price is lower. Bill